Metro Manila (CNN Philippines, April 27) — The Supreme Court (SC) has reiterated its 2021 decision perpetually banning former Surigao del Sur Rep. Prospero Pichay Jr. from holding any position in government over the unlawful investment of Local Water Utilities Administration (LWU) to a thrift bank in 2009 amounting to ₱780 million.
In its briefer, the SC Public Information Office said the Court declared as moot and academic the petition filed by Mary Elizabeth Ortiga-Ty to declare as immediately executory the accessory penalty of perpetual disqualification imposed on Pichay.
In 2001, the SC found Pichay liable under Section 52-A, Rule IV of the Uniform Rules on Administrative Cases in the Civil Service, and “imposing upon him the penalty of dismissal and the accessory penalties of forfeiture of all benefits, except leave credits, and perpetual disqualification to hold any public office.”
Justice Maria Filomena Singh wrote the decision.
The case stemmed from LWUA’s decision to purchase 60% of shares of the Express Savings Bank Inc. (ESBI) for ₱80 million without prior approval of the Monetary Board (MB).
LWUA, then under Pichay, also deposited ₱300 million in ESBI after it was designated as its depository bank, as well as transferred ₱400 million in capital infusion, also without prior approval from MB.
This led to the filing of criminal and administrative complaints against Pichay and several officials of LWUA.
The SC said LWUA’s ESBI transaction resulted in ₱780M loss on the part of government.
The undue injury to the government was also the basis for the SC’s ruling that the Sandiganbayan had probable cause to charge Pichay of graft.
In August 2022, the Sandiganbayan also upheld its conviction of Pichay, sentencing him to 10 years imprisonment for each of the three counts of graft charges.
Pichay was also perpetually disqualified from public office in connection with the anomalous deal.
